Civil Law,  Legally Yours

Quiao v. Quiao

Quiao v. Quiao

Brigido Quiao v. Rita Quiao, Kitchie Quiao, Lotis Quiao, Petchie Quiao, represented by their mother Rita Quiao
G.R. No 176556, July 4, 2012
Reyes, J.

FACTS:

Herein respondent Rita C. Quiao (Rita) filed a complaint for legal separation against herein petitioner Brigido B. Quiao (Brigido). Subsequently, the RTC rendered a decision. As such, the herein parties shall be entitled to live separately from each other, but the marriage bond shall not be severed.

Except for Letecia C. Quiao who is of legal age, the three minor children, namely, Kitchie, Lotis and Petchie, all surnamed Quiao shall remain under the custody of the plaintiff who is the innocent spouse. Further, except for the personal and real properties already foreclosed by the RCBC, all the remaining properties, shall be divided equally between herein [respondents] and [petitioner] subject to the respective legitimes of the children and the payment of the unpaid conjugal liabilities of [₱]45,740.00. [Petitioner’s] share, however, of the net profits earned by the conjugal partnership is forfeited in favor of the common children.

On July 7, 2006, or after more than nine months from the promulgation of the Decision, the petitioner filed before the RTC a Motion for Clarification,12 asking the RTC to define the term “Net Profits Earned.”

ISSUE:

What is the meaning of “net profits earned” by the conjugal partnership for purposes of forfeiture under Article 63 of the Family Code?

HELD:

The net profits of the conjugal partnership of gains are all the fruits of the separate properties of the spouses and the products of their labor and industry. The petitioner inquires from us the meaning of “net profits” earned by the conjugal partnership for purposes of effecting the forfeiture authorized under Article 63 of the Family Code. He insists that since there is no other provision under the Family Code, which defines “net profits” earned subject of forfeiture as a result of legal separation, then Article 102 of the Family Code applies.

Article 129 of the Family Code applies to the property relations of the parties. Moreover, as to the definition of “net profits,” we cannot but refer to Article 102(4) of the Family Code, since it expressly provides that for purposes of computing the net profits subject to forfeiture under Article 43, No. (2) and Article 63, No. (2), Article 102(4) applies. In this provision, net profits “shall be the increase in value between the market value of the community property at the time of the celebration of the marriage and the market value at the time of its dissolution.” Thus, without any iota of doubt, Article 102(4) applies to both the dissolution of the absolute community regime under Article 102 of the Family Code, and to the dissolution of the conjugal partnership regime under Article 129 of the Family Code.

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